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Lord Turner ‘lacks understanding’ of FSCS plight

Informed Choice executive director Nick Bamford says FSA chairman Lord Turner does not understand the damage Financial Services Compensation Scheme levies are causing to IFA firms after Turner claimed they are “fully proportionate”.

At a press conference in London last week following the FSA’s annual public meeting, Turner said FSCS levies are “determined by metrics of revenue or assets, so those are already proportionate to the size of the firm”.

In a letter to FSCS chief executive Mark Neale, Bamford writes that although the FSCS seems to understand the impact the levies are having, the FSA does not.

Referring to Turner’s comments, Bamford says: “Such statements demonstrate a lack of understanding of the damage being caused to the IFA community by successive failures of both fund management firms and some poor behaviour from within the sub-group in which IFAs find themselves.”

In April, Informed Choice campaigned for a fairer way of funding the FSCS which received 1,421 signatures.

The FSA is expected to publish a review of the FSCS funding model later this year.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Martin is absolutely right. Lord Turner addressed none of the issues and demonstrated a frightening lack of insight into the plight of many IFAs. Typical of beaurocrats, they are so far away from the coal face. Extremely worrying that a respected individual makes such crass comments. Now I must chase our MP who is equaly useless.

  2. Julian Stevens 18th July 2012 at 7:34 pm

    He’s totally wrong, of course. But the only thing we can do about it is to continue doggedly to draw this financially crippling injustice to the attention of our MP’s, in the hope that if enough of them raise their concerns in Parliament in general and with the TSC in particular, somebody will start to apply pressure to the FSA to change its stance. It’s yet another example of that same old poisonous chestnut ~ lack of accountability. The FSA hears but it doesn’t listen.

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